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Waste connections (NYSE:WCN) was downgraded to Neutral from its previous investment rating of Buy among analysts at financial services firm UBS on Wednesday.
They said the 28% rise in the waste collection and recycling company’s shares over the past three months has boosted its share price. valuation multiples and limited the likelihood of further gains.
“We continue to like Waste Connections’ (WCN) business model, but view declining inflation as a headwind to core price growth in 2024-25,” said Jon Windham, an analyst at UBS, in a 28th report. February.
UBS raised its price target on Waste Connections (WCN) from $170 per share to $181 per share, based on an estimated enterprise value of 17 times earnings before interest, taxes, depreciation and amortization for 2025 .
“The pace of Waste Connections (WCN) acquisitions in 2024-25 represents the most likely fundamental risk to our earnings estimates and stock recommendations,” according to UBS.